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Permalink Reply by Bobi Carr ("parker") on February 8, 2010 at 20:23

This article caught my attention because I remember reading advice from the Barnett Shale that said to make sure you reserve your Geothermal rights.

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Permalink Reply by E & E on February 9, 2010 at 4:35

Parker,

Good advice. It can just be added in the Oil & Gas Only clause. O&G's are really interested in this yet, so it isn't one that has to be fought hard for. Besides geothermal, add your water rights too, as they aren't normal included in the "normal" lease clause.

Earlene

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Permalink Reply by BirdDawg, plain ole' idiot on February 9, 2010 at 14:44

Earline,
Do you mean the O&G's "are not" really interested in this yet?

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Permalink Reply by E & E on February 9, 2010 at 15:17

yes, BD.....that's what she meant......was probably on her 17th cup o' coffee for the mornin or she typed "not" in invisible internet ink .... good catch.

Earl

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Permalink Reply by DJG on February 9, 2010 at 15:55

If you already have a clause stating that the lease only covers Oil & Gas & associated hydrocarbons wouldn't it already be protecting your Geothermal rights without specifically listing that they are reserved??

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Permalink Reply by j garrett on February 9, 2010 at 16:31

Yes I think you are right D Garr. I attended the SMU Geothermal Conference in 2008 and spoke with a Houston based atty about geothermal rights. I was surprised that hot water would be considered a mineral, but it is in Texas.

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Permalink Reply by Mac Davis on February 9, 2010 at 14:40

I wonder if the law has caught up to this?

If the well isn't on your property, do you get paid for geothermal energy from the "reservoir" under your land?

Does geothermal get unitized?

Does a natgas unit order cover geothermal as well as gas?

Does the standard lease claim those rights?

If you reserve mineral rights and sell the land, do you reserve geothermal rights?

Is there a 10 year preemption?

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Permalink Reply by j garrett on February 9, 2010 at 15:26

In Texas, geothermal is treated as a mineral and is covered (inadvertently) by standard O & G leases. Unless it is specifically excepted out of the lease, the operators own those rights (to develop the resource). The problem with geothermal is the heat loss of the water by the time it gets to the top of the hole.

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